Forming An Arizona Limited Liability Company
Forming an Arizona Limited Liability Company is a simple process, but getting the process completed efficiently and in a timely manner can be difficult for many individuals and companies. Note: The information graphic in the above video outlines the six basic steps required to form an arizona llc. Each step is described in great detail below. If you find yourself in any of these situations, note: your attorney is almost always available for consultation. Thank you!
First, you must determine whether your business meets the requirements for forming an arizona llc. There are two types of Arizona Limited Liability Companies: (I) A C Class Corporation and (ii) a Limited Liability partnership. (If you meet the first two qualifications, you are a C Class Corporation; otherwise, you are a limited liability company). A Class Corporation is considered to be a "self-limited" company. A "self-limited" corporation has no minimum assets, equity or other minimum requirements. LLCs are not "self-limited".
Next, you will need to locate your registered agent and ascertain that he or she is a resident of Arizona. In addition, you will need to get your business license (if a C Class Corporation) or tax identification number. Your agent should be willing and able to provide you with the necessary paperwork. Finally, you will need to contact the Arizona Corporation Commission and arrange all of these things before Forming an Arizona LLC.
Forming an Arizona Limited Liability Company
Forming an Arizona Limited Liability Company is a fairly straight forward process. Once you have determined your business identity, you will select a unique name, so that all of your business dealings are reflected legally. You will also select an Arizona LLC registered agent who can manage your LLC effectively. After you have completed all of these steps, the next step in the process is to select the tax identification number and the company secretary's mailing address. All of these necessary documents should be completed and sent to the above mentioned office as soon as possible, before the IRS begins its investigation.
Once you have all of these items in order, your Arizona LLC will need to file an application with the Arizona Corporation Commission. The application should be filed by the third full month following your first notification to the company. When the application is filed, the applicant must also pay the administrative fee. If the applicant does not pay this fee, then he or she will not be granted approval to form an Arizona LLC but instead will be required to file a refund request with the appropriate tax authority.
Once the Arizona Corporation Commission receives your application, it will determine if the LLC is a "sole proprietorship", "incorporation", or "manager-managed". You will also need to provide the commission with copies of the articles of organization, the bylaws, and the operating agreement. A copy of the complete Operating Agreement must also be provided. Your final step is to file your notice of intent with the Arizona Corporation Commission along with the forms and fees required by the state. Once all of these documents are received, the LLC can begin working under the guidelines outlined in the Arizona Corporation Commission's rules and regulations.
LLCs are not treated as S corporations are when filing federal tax returns. This means that an LLC cannot be run by only one person or one business, as is the case with most S corporations. As an example, assume you own a small pizza shop in Arizona. If that business is only one person (you), you will not be able to deduct your Arizona LLC income since it would be considered a sole proprietorship. However, an LLC that has more than one employee and is domiciled in Arizona will be able to deduct the income of each employee on their personal taxes.
While an LLC filing may not always be necessary for incorporating in Arizona, it is often times preferred. In many ways, incorporating as an Arizona LLC gives you greater control over the structure and outcome of your business. Since an LLC has more options available to it than does a Corporation, the potential to succeed with it is higher. It can be difficult to accurately predict success or failure, which is why incorporating as an Arizona LLC is often a good idea. Even if you decide to incorporate as an Arizona LLC, having the appropriate paperwork completed ahead of time will help make things go much smoother!
Thanks for reading, for more updates and articles about arizona llc do check our homepage - Kyushu1 Saiki We try to update the site bi-weekly